Putin refused to flood the world with oil


Vladimir Putinto: Sergey Guneev / RIA Novosti

The leadership of Russia promised OPEC not to increase production even in conditions of increasing prices on the world market. This was stated by Chairman of the Mohammed Barkindo, reports CNBC. According to Barkindo, he personally assured President Vladimir Putin and energy Minister Alexander Novak.

At the end of January the price of oil Brent for the first time in three years exceeded $ 70 per barrel. Compared with June last year, the price of oil jumped by almost 60 percent. Such a rapid rise has raised fears that the parties to the agreement deem the task done and get out of agreements on production cuts.

The head of “Gazprom oil” Alexander Dyukov said earlier that he hoped the increase in the volume of production of the Russian manufacturers, which led to suspicions that Russia is ready to leave the agreement, CNBC adds.

According to the channel, although market analysts believe that supply and demand is currently balanced, the goal of OPEC is to reduce the global industrial oil reserves to the average of the five years. Now it is significantly higher at 109 million barrels.

In November 2017, more than 20 countries have agreed to extend their agreement to reduce oil production in accordance with the previously established quotas. The main lobbyists of the agreement were Saudi Arabia and Russia — world leaders in oil production. Moscow previously expressed his willingness to sharply increase oil production in case of failure of agreement.

Video, photo All from Russia.


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